Why are so many people setting up Living Trusts to Avoid Probate?
1. A Probate Is Expensive. In general, attorneys love probates because we are entitled to charge large fees on a probate. However, what is good for attorneys is not what is best for your heirs. In California, statutory probate fees range from 4-8% of the gross value of your estate. Court costs and appraisal fees are added to that. On the other hand, a properly created and maintained living trust avoids probate. When you are gone, your successor trustee simply pays your last bills, reads your trust to see who gets your property, and then distributes the property. This all occurs without reporting to the probate court. 2. A Probate Means Delay. A probate takes at least six months to get your assets to your heirs. We feel this delay is actually worse than the expense of a probate because of the potential hardship and emotional drain. On the other hand, property in a living trust generally can be distributed in a few short weeks. 3. A Probate Invades Your Privacy. A probate is open to the
